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President Trump’s decision to suspend global tariffs for 90 days (excluding China) has intensified debates about his trade strategy’s effectiveness. Renowned economist argues that while tariffs are a critical tool, Trump must prioritize and to secure long-term economic success. Here’s the breakdown:
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Werner emphasizes that . Instead, Trump should:
– for community and regional banks to empower local economies.
– Redirect capital toward small businesses and Main Street, reducing reliance on Wall Street.
– Foster competition by dismantling monopolistic practices in the financial sector.
Why this works: Local banks are better positioned to fund small businesses, which drive ~44% of U.S. economic activity. Deregulation aligns with Trump’s first-term successes in slashing Obama-era financial rules.
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Trump’s tariff pause provides a temporary reprieve, but Werner warns:
– must be part of a broader plan to balance trade deficits, not just punish China.
– Focus on restructuring to weaken the dollar’s dominance without destabilizing global markets.
– Prioritize reshoring critical industries (e.g., semiconductors, rare earth minerals) to reduce dependency on adversarial nations.
Key stat: The U.S. trade deficit hit $1.2 trillion in 2024, with China accounting for 42%. Simply pausing tariffs won’t resolve structural imbalances.
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Werner identifies as covert adversaries:
– The CIA’s alleged ties to European central banks could undermine U.S. efforts to restructure global trade.
– Countering this requires tighter oversight of international financial flows and intelligence-sharing agreements.
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Trump’s first-term deregulation boosted GDP growth by 0.5% annually. To sustain this:
– Streamline permitting for energy projects (e.g., oil, nuclear) to lower costs and spur innovation.
– Roll back Biden-era climate regulations stifling manufacturing.
– Simplify tax codes to incentivize domestic reinvestment.
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Critics warn Trump’s tariff-centric approach risks:
– : Past tariffs raised consumer prices by 2-4%.
– : Reciprocal tariffs could trigger $3 trillion in equity losses.
– : China’s 34% retaliatory tariffs on U.S. goods already threaten agriculture and tech exports.
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Werner’s blueprint hinges on . By empowering local banks, dismantling bureaucracy, and countering foreign interference, Trump could reignite sustainable growth—but only if he avoids overreliance on tariffs alone.
